CNET News Video: As supplies in Japan dwindle, prices may increase

CNET News Video: As supplies in Japan dwindle, prices may increase

1:28 /
March 16, 2011

As fallout from the earthquake and tsunami continues to devastate Japan, the tech industry there has come to a screeching halt. As production is suspended at several major companies, what long-term effects will this have on global supply and prices of popular electronics? CNET's Kara Tsuboi takes a look.

-Sony, Panasonic, Toshiba, Hitachi, Fujitsu, Sandisk, the list could go on.
Naming companies all forced to temporarily shut down operation at their Japanese factories due to the country's catastrophic natural disaster last week.
And subsequent aftershocks and rolling power blackouts ever since.
-Clearly, the real issues are lack of power, lack of transportation to get workers up there, so it's just gonna be time before they can get people, you know, back into the jobs
and back into producing the things that the people are using.
-Japanese companies manufacture roughly 40% of parts and pieces for everyday electronics.
Flash memory for iPods and laptops, LCD screens for tablets and televisions, a lengthy stall in production could decrease world supply and only increase demand.
-Right now, manufacturing facilities up to 500 miles away are shut down.
If those shutdowns persist for more than a couple of weeks, we are likely to see increased cost down the line for chips
and then maybe even the things that we pay for like iPads, iPhones, and other smartphones.
-In addition to electronics makers, Japanese car companies have also suspended production to assess damage to their factories and shipping ports.
But Toyota and Nissan are both expected to resume manufacturing in the coming week.
For CBS News, I'm Kara Tsuboi, CNET.com in San Francisco.